Monolithic Power Systems Announces Record First Quarter Revenue and Operating Income
Monolithic Power Systems (MPS) announced operating results for the quarter ended March 31, 2008. The company also announced that it would be re-stating its 2006 and 2007 annual financial statements to correct an error in the tax provision, which will result in a reduction in reported book tax expense for both years and an increase in reported net income for the year ended December 31, 2007 and a reduction in net loss for the year ended December 31, 2006. Therefore, the results reported will reflect the company’s financial performance at the operating income level, and only selected balance sheet data is included.
The operating results for the quarter ended March 31, 2008 are as follows: net revenues of $35.4 million, up 44.6% from $24.5 million in the first quarter of 2007 and down 8.0% sequentially from $38.5 million in the fourth quarter of 2007; gross margin of 63.2%, compared to 63.4% in the first quarter of 2007 and 63.9% in the fourth quarter of 2007; GAAP operating expenses of $17.0 million, including $16.3 million for research and development and selling, general and administrative expenses, which includes $2.7 million for stock-based compensation, and $0.7 million for patent litigation expenses; non-GAAP operating expenses of $14.3 million, excluding $2.7 million for stock-based compensation. GAAP operating margin of $5.3 million, or 15%, and Non-GAAP operating margin of $8.1 million or 23%.
"We are pleased with the recent quarter’s results; our strongest Q1 in MPS’ history, and a testament to the strategy we have been putting in place over the past eighteen months," said Michael Hsing, Chief Executive Officer and co-founder of MPS. "Our continued focus on rapidly introducing new high-performance products and expanding our global market presence is paying off, and we are well positioned for future growth."
"We are working to resolve and restate our 2006 and 2007 annual financial statements as quickly as possible," said Rick Neely, Chief Financial Officer of MPS. "We would like to note that the restatement relates to an error in recording the tax effect of stock-based compensation expense related to MPS’s cost-share agreement with a foreign subsidiary, and will result in a reduction in reported book tax expense in both years and an increase in reported net income for 2007 and a reduction in net loss for 2006. There is no cash impact as a result of this correction. We look forward to providing these and our full quarter results as soon as possible."